By Charlotte GAUCHON
17 June 2025
The Taux Effectif Global (TEG), and its equivalent for consumer credit, the Taux Annuel Effectif Global (TAEG), represent much more than just a percentage on a loan contract. It is the key indicator of the real cost of your financing, a central notion in the lender's remuneration. This tool, required by law, has been designed to enable you to compare credit offers transparently and to protect you against abusive practices. However, it is complex to calculate and mistakes are common, leading to penalties that can be severe for credit institutions. Understanding how it works is therefore essential for all borrowers, whether individuals or company directors. Understanding the TEG and TAEG: definition and fundamental role The Taux Effectif Global, or TEG, has a clear mission: to provide a complete overview of the cost of a loan. For...
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